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It can be assumed that much of the growth and profitability took place not because of large companies, but because of the MSME
Net interest margins in the sector could be hit as banks may have to raise the rates offered on deposits to retain customers
The possibility of key policy rate cut is not bright as industrial output grew by 6.8 percent in January against just 2.5 percent in the previous month.
The RBI will next review monetary policy on March 15.